New Delhi, April 13: Punjab National Bank (PNB) today became the first bank to launch a reverse mortgage loan product called PNB Baagbaan.

Under this scheme, senior citizens can avail of loans along with interest up to Rs 1 crore against their properties for at least 20 years while continuing to occupy these houses. The interest rate will be 10 per cent per annum. The margin of the bank will be 20 per cent.

S.C. Gupta, chairman and managing director of PNB, said, “The loan would be given as regular fixed monthly payments calculated during the loan period or till the death of the last surviving spouse. For example, on a property valued at Rs 1.2 crore, the monthly instalment payable at the interest rate of 10 per cent will be Rs 25,000 for 15 years.”

“Senior citizens can cancel a loan transaction within 10 days of finalising it under ‘right to recession’,” he added.